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March 2018

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Asian manufactures are currently having adequate inventories of viscose staple fibre (VSF).

In the Chinese market, inventory with VSF producers is within limits, but most large spinners are carrying stocks in adequate quantities. At present, market quotations of VSF have increased to about RMB 13,500-13,600/ton, but traded prices remain in the range of RMB 13,200-13,300/ton.

In Indonesia, spinners are likely to cut down consumption of VSF this month. Wherever feasible, they are trying to spin more of 100% Cotton/Polyester yarn, which currently has more demand, in order to avoid stockpiling, especially in view of the upcoming Ramadhan/Hari Raya holidays. The demand for VSF in export market is also dull and at present, VSF prices are hovering in the range of US$ 1.85-1.90/kg.

In Turkey, market sentiments continue to be weak for the entire textile value chain and prices are currently under pressure. Movement in P/V and 100% Polyester yarn is comparatively better than Viscose yarn. The offers for VSF imported from China are around US$ 1.85–1.87/kg CIF basis.

In the Indian market, domestic spinners are increasing prices of 20s and 30s viscose yarn. However, there is not enough demand for fabric, and viscose yarn prices are not likely to withstand the increasing trend due to over supplies and higher viscose yarn inventories with spinners.

In Thailand, the overall market demand is slow and spinners are not receiving enough orders of 100% Viscose yarn. Therefore, yarn stocks have gone up.

VSF is a man-made biodegradable fibre with characteristics akin to cotton, and is widely used in the textile industry.